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9 <br /> 4. Structures Used for Inherently Religious Activities <br /> ADDI funds may not be used for the acquisition, construction or rehabilitation of structures to <br /> the extent that those structures are used for inherently religious activities. ADDI funds may be <br /> used for the acquisition, construction or rehabilitation of structures only to the extent that those <br /> structures are used for conducting eligible activities under 24 CFR Part 92. Where a structure <br /> is used for both eligible and inherently religious activities, ADDI funds may not exceed the cost <br /> of those portions of the acquisition, construction or rehabilitation that are attributable to eligible <br /> activities in accordance with the cost accounting requirements applicable to ADDI funds in 24 <br /> CFR Part 92. Sanctuaries, chapels or other rooms that an ADDI-funded religious congregation <br /> uses as its principal place of worship, however, are ineligible for ADDI-funded improvements. <br /> 5. Employment Discrimination <br /> Pursuant to 24 CFR § 5.109(e), a religious organization's exemption from the federal <br /> prohibition on employment discrimination on the basis of religion, set forth in section 702(a) of <br /> the Civil Rights Act of 1964 (codified at 42 U.S.C. § 2000e-1), is not forfeited when the <br /> organization participates in the HUD program. Notwithstanding the foregoing, non- <br /> discrimination requirements imposed by statute on all HOME grantees shall apply to religious <br /> and faith-based organizations. <br /> I. Match Requirements <br /> HOME matching contribution requirements of 24 CFR §§ 92.218-92.222 apply only to Fiscal <br /> Year 2003 ADDI funds. HOME requires a non-federal match of 25% of total HOME and ADDI <br /> funds expended program-wide. Match includes cash, assets, services, labor and other <br /> resources that are permanently contributed to the County's HOME Investment Trust Fund and <br /> are not used as match for other federal programs. The Project is expected to generate eligible <br /> match contributions but is not required to have a 25%match of ADDI funds. <br /> J. Debarred and Suspended Parties <br /> No portion of this loan shall be used directly or indirectly to employ, award contracts to, or <br /> otherwise engage the services of, or fund, any contractor or subcontractor during any period of <br /> debarment, suspension, voluntary exclusion or placement in ineligibility status of such <br /> contractor or subrecipient under the provisions of 24 CFR Part 24. The Agency represents and <br /> warrants that the Agency is not debarred, suspended, proposed for debarment, declared <br /> ineligible, or voluntarily excluded from participation in federal assistance programs under such <br /> regulations or under Executive Orders Nos. 12549 or 12689, "Debarment and Suspension." <br /> The Agency will also not provide any loan funds to persons listed on the Excluded Parties List <br /> System. All potential loan applicants must be searched on the Excluded Parties List and <br /> verification must be included in their files. The Excluded Parties List System can be checked <br /> at the following web-site: http://epls.arnet.gov. <br /> ADDI Agreement between Page 8 of 23 <br /> City of Everett and Snohomish County <br />